Reductions in our operating and maintenance budgets have been in place for some time. Another important step for us in coming to grips with today’s 7 percent cut is to freeze hiring. We must do so, effective immediately. We will do everything we can to avoid layoffs. Salaries, however, will be affected. The Governor announced this morning that state funding for salary increases for state employees, William & Mary people included, will be deferred until July 1, 2009. The College will probably have to delay salary increases until then. Governor Kaine also opposed mid-year tuition increases or reductions in student financial aid. We will do our best to avoid a mid-year tuition increase, and we will not cut financial aid.

Bad news from the state has been expected, and we have been planning for it. Before final cost-saving measures are put in place, there will be campus forums in the next few weeks to get your thoughts on funding priorities.